Thursday, November 11, 2010

Moldova has expensive apartments, comparing to the EU countries

The prices on apartments in Moldova have raised a lot in the past three years. Comparing to some European capitals, a one-room apartment in the Moldovan capital, Chisinau, would cost between 23.000 Euro to 36.000 Euro, depending on the location of the apartment and the building’s utilities.

A one-room apartment in the second largest city of Moldova, Balti, would be a little bit cheaper that in the capital. The price varies between 12.000 Euro to 23.000 Euro. Many people from Moldova began to invest their money in apartments because it’s the most stable and safest way to protect your money. After the Russian currency collapsed in the ‘90s, the people are afraid of keeping their money in banks.

Having a job in Moldova won’t let you buy an apartment. The people go to work abroad in countries like Russia, Italy, Portugal or Spain, where are getting paid better. With this money they return home and start investing them in apartments or renewing their old homes.

A one-room apartment in the Romania’s capital, Bucharest, would cost between 18.000 Euro to 128.000 Euro. A one-room apartment in the Romanian city of Iasi would be 19.000 Euro up to 50.000 Euro.

Considering that Romania is a European capital, everyone can find cheaper one-room apartments in Bucharest than in Chisinau, where the prices start from 23.000 Euro.

1 comment:

But Bucharest is many times the size of Chisinau, with many times the number of available homes and apartments. The law of supply and demand kicks in when someone in Chisinau wants to buy and apartment, as there is a much smaller selection. That's one reason the prices are higher.